50yr Est. General, Electrical, &Overhead Door Contractor-$497K EBITDA!

Pennsylvania
listing image
Cash Flow:$497,000
EBITDA:$497,000
Gross Revenue:$3,340,000
BUSINESS DESCRIPTION

Essential Business That Has Grown Year Over Year!

Past and Copy the link below to sign the NDA:

https://generational.tfaforms.net/4660083?DealID=a1L2G000005Yep8

Headquartered in northern Pennsylvania, the Company is a jack-of-all-trades company that offers construction and electrical contracting services as well as overhead doors sales to customers in the northern Pennsylvania and southern New York area. In operation for 50 years, the Company has developed a broad set of capabilities and has completed work on a variety of projects. The Company has strong relationships with key customers in a variety of markets including Industrial (55% of revenue); Commercial (35%); and Residential (10%).

The Company specializes in all industrial, commercial, and residential electrical and construction services. The Company provides electronic cabling, lighting, upgrading, and repairs, among electrical services, as well as concrete laying, drywall installation, flooring, and window, door, and siding installation, among many other construction services. The Company’s most popular construction service, overhead door installation, has become a standalone division within the Company. From initial customer contact to the completion of service or installation, the Company actively engages with customers to assure customer satisfaction and boost customer loyalty.

The Company completes around 400 individual projects per year for many local industrial, commercial, and residential clients. The Company has many active clients that provide the Company with repeat revenues, as well as individual, one-off customers that keep the Company’s operation steady throughout the year.



INVESTMENT APPEAL

Low Employee Turnover. The Company has a low turnover, which is a signal of efficiencies and alignment within the Company. Low turnover allows the Company to retain the most skilled and experienced personnel in the industry.

Management Will Remain through Transition. Management is willing to remain through the transition period, in order to preserve operational cohesiveness. Additionally, all key employees are expected to remain with new ownership beyond the sale of the Company.

Consistent Sales Growth. Historical sales have grown from $2,609,000 in 2021 to $3,336,000 in the fiscal year ending December 31, 2023, representing a compound annual growth rate of 8.1%. Sales have grown consistently year over year in the historical period.

Healthy Earnings Metrics. The Company was able to maintain healthy margins throughout the historical period and during the COVID-19 pandemic, never earning below 10.1% in EBITDA margins between 2020 and 2023.

Backlog of Signed Contracts. Given its projected-based contracts, the Company maintains a healthy backlog, demonstrating significant demand for the Company’s services and facilitating revenue opportunities from one year to the next.


DETAILED INFORMATION
Location
Pennsylvania
Inventory
Not Included in asking price
Real Estate
Owned
Building SF
32,000
Employees
20
Facilities
The Company currently operates out of four facilities in PA, but only one, the Company’s warehouse is expected to be included in the sale of the Company, as the remaining locations are either on the shareholders’ personal property or are redundant for Company operations. The main warehouse is just under 32,000 square feet of warehouse, office, and vehicle storage space that management believes will be adequate for operations moving forward.
Competition
Industry Expertise: In addition to the owners industry experience, the Company’s key employees also have significant industry knowledge. This foundation of knowledge has given the Company a leg up on many regional and local competitors. Growth of Home Automation and Wireless technology allows electrical contractors to retrofit an existing structure. The global smart home market is forecast to reach about $380 billion in 2028, growing at a compound annual growth rate (CAGR) of 21.1% during the 2021-2028 period, according to Fortune Business Insights.
Growth & Expansion
The value of US private and public building construction, a major indicator for electrical contracting, is forecast to grow at an annual compounded rate of 5% between 2023 and 2027, based on changes in physical volume and unit prices. The established business methodologies refined by the Company are expected to yield growth going forward. Management has identified several opportunities to accelerate growth trends over the next several years.
Support & Training
The management team has focused on internally promoting and training key employees to take on additional responsibilities. Management indicates the Company has highly qualified and tenured employees capable of overseeing the current owners’ responsibilities to ensure a smooth transition of ownerships.
Reason for Selling
Retirement
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Dan
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Dan Bernstein